Morning:
14°c
Libor lowest since collapse of Lehman
21.10.08
The interest rates banks charge each other for short-term loans today fell to their lowest since before Lehman Brothers failed.
Short-term interbank lending has been falling in the past week since governments led by the UK started recapitalising their banks and offering unlimited amounts of cash from their central banks.
Libor, the London interbank offered rate to borrow sterling for three months, this afternoon fell to 6.085% from 6.11625%. The three-month dollar rate dropped to 3.83375% from 4.05875%.
In more evidence the funding market is defrosting, Barclays said it was close to issuing a three-year bond to raise more than £1 billion.
